Spanish construction company Sacyr is selling its property unit—and hedge funds are seen as the most likely buyers.

Sacyr put Vallehermoso up for sale on Tuesday. Reuters reports that it is drawing interest from hedge funds that are also seeking to buy the property-management division of Spain's capital-starved banks.

Sacyr, which merged with Vallehermosa 10 years ago, said in June that it had held talks about the sale with hedge funds and other companies.